Small business owners’ optimism has soared to its highest level since June 2021 after President Donald Trump’s White House victory and Republican control of Congress, according to the latest survey from the National Federation of Independent Businesses (NFIB).
The NFIB data, released Monday, shows a significant spike in confidence following the election, signaling a renewed hope for pro-business policies. “The election results signal a major shift in economic policy, leading to a surge in optimism among small business owners,” said NFIB Chief Economist Bill Dunkelberg.
A key driver behind this boost in optimism is the sharp increase in the percentage of owners who expect economic improvement. That figure rose by 41 points, reaching its highest levels since Trump was last in office in June 2020. Dunkelberg noted that the results broke a three-year trend of record-high uncertainty regarding future business conditions.
Inflation has hit small businesses especially hard in recent years, as they lack the financial resources of larger corporations to withstand economic challenges. This inflationary pressure, compounded by the aftermath of the COVID-19 pandemic, left many small business owners struggling to stay afloat.
The NFIB report highlighted that the net percentage of owners expecting higher sales volumes increased by 18 points to 14%, the highest reading since February 2020. Additionally, the net percentage of owners who believe it is a good time to expand their businesses rose by eight points to 14%, marking the highest confidence level since June 2021.
Trump’s promises to reduce taxes, expand domestic energy production, and cut costly government regulations are fueling this renewed optimism. Many small business owners are hopeful that these measures will alleviate inflationary pressures and promote stronger economic growth.
“Owners are particularly hopeful for tax and regulation policies that favor strong economic growth as well as relief from inflationary pressures,” Dunkelberg said. “In addition, small business owners are eager to expand their operations.”
With Main Street’s outlook improving dramatically, the anticipation of business-friendly policies is setting the stage for potential economic expansion in the small business sector.
